Nanotechnology is a key advanced technology enabling contribution, development, and sustainable impact on food, medicine, and agriculture sectors. Nanomaterials have potential to lead qualitative and quantitative production of healthier, safer, and high-quality functional foods which are perishable or semi-perishable in nature. Nanotechnologies are superior than conventional food processing technologies with increased shelf life of food products, preventing contamination, and production of enhanced food quality. This comprehensive review on nanotechnologies for functional food development describes the current trends and future perspectives of advanced nanomaterials in food sector considering processing, packaging, security, and storage. Applications of nanotechnologies enhance the food bioavailability, taste, texture, and consistency, achieved through modification of particle size, possible cluster formation, and surface charge of food nanomaterials. In addition, the nanodelivery-mediated nutraceuticals, synergistic action of nanomaterials in food protection, and the application of nanosensors in smart food packaging for monitoring the quality of the stored foods and the common methods employed for assessing the impact of nanomaterials in biological systems are also discussed. [Figure not available: see fulltext.].